New Rules May Speed Up Short Sales
Sarah Buduson
Reporter, KPHO.com
The U.S. government launched a new program Monday to help homeowners avoid foreclosure.
HAFA, or Home Affordable Foreclosure Alternatives Program, gives banks and borrowers incentives to complete a short sale if they cannot come to terms on a loan modification.
Usually, if a homeowner does not qualify for a loan modification or cannot afford their trial modification payment, the lender goes forward with a foreclosure.
Now, a homeowner will receive $3,000 in moving expenses and the lender will receive $1,500 for administrative and processing costs if a short sale is completed instead.
"It is a start," said Greg Markov, a real estate agent with the Valley firm HomeSmart. "But I really do believe this is only going to help a small group of people."
"For people who are not wanting to do loan modification, who are wanting who want to go straight on to the short sale, those people are probably going to have list, market and then submit the short sale package to the lender, just as before," said Markov.
Markov also said banks will not be obligated to participate in the program.
"The final decision making rests with the lender," said Markov. "They can't force the lender's hand to ultimately approve or decline a short sale."
Short sales notoriously take a long time in the Valley.
"Something is seriously wrong with the short sale process as we know it today," said Markov.
"Namely, it is very slow," he said. "It is plagued with uncertainty for the seller, the buyer and the real estate agents that are representing them."
Source: KPHO.com
For more questions about HAFA or Short Sales, please contact the following:
BBT Real Estate Group Team
Keller Williams Preferred Properties
9701 Apollo Drive, Suite 102
Largo, MD 20774
Phone: 240-737-5024
EFax: 240-296-5024
Email: shortsales@bbtrealestategroup.com
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